Williamsburg Buyers Still Facing Delays

May 21, 1985|By Jack Snyder of The Sentinel Staff

Even as builder William J. Levitt solicits reservation deposits for a giant housing development in Osceola County, some buyers in his Williamsburg subdivision south of Orlando are complaining of delays in getting back deposits after waiting more than a year for their homes.

Some Williamsburg buyers have been waiting more than two years for the house they purchased.

Construction has been at a standstill since late last year at Williamsburg, a community planned for 9,000 houses east of Sea World and south of the Beeline Expressway. Orange County stopped issuing building permits because Levitt hadn't built a road and bridge connecting the development with U.S. Route 441.

Levitt, 78, announced plans in December to build at least 26,000 houses in Poinciana, a huge planned community in Osceola and Polk counties.

The project, called Poinciana Park, is to be developed by Capital Communities, an affiliate of Old Court Investment Corp.

The latter company is a wholly owned subsidiary of Old Court Savings and Loan of Baltimore, focal point of a depositors' run on Maryland's state- chartered thrifts earlier this month.

The savings association was to provide mortgages for homes sold in the development. The investment subsidiary was to provide land acquisition and construction funds for the development.

Williamsburg is being developed by International Communities Corp., which is not directly connected with Capital Communities. Levitt also has been developing Williamsburg-Tampa through another corporation.

Earlier this month Capital Communities ran advertisements for Poinciana Park in The Washington Post, The New York Times and other Northeastern newspapers.

The advertisements asked for $500 reservation deposits. In return for the deposit, the prospective buyer would receive a priority number and a brochure on the project. Construction hasn't started on Poinciana Park. A spokesman for the Osceola County Planning Department said Monday no plans have been filed on Poinciana Park.

Deposits would be placed in an interest bearing escrow account at Old Court Savings, the advertisements said. The rate of interest wasn't specified.

Harold Romans of Akron, Ohio, said it took him more than two months to get his $5,000 deposit back on a Williamsburg house. He said his contract called for the return of his deposit, with no interest paid, if the house wasn't delivered in a year. Last December he asked for his money back. He said

he got a check in March after repeated requests for his money.

Diana Evers-Gohr, who purchased a home on Feb. 14, 1984, asked for the return of her $5,000 deposit on Feb. 14 this year. She hadn't received a check by Friday.

She said Pete Taylor, Levitt's former Florida project director, told her deposits were being returned based on a pecking order determined by the company.

Emanuel Kantrowitch, a Williamsburg resident, said his son also experienced delays in getting his deposit returned. ''They had his money for well over a year at no interest,'' he said.

Some buyers experiencing delays haven't asked for their deposits. Frederick Warnecke has been waiting since March 1983 for his house. ''We're marking time,'' Warnecke said.

Edward Cortese, senior vice president of International Community Corp., said there have ''been some delays, but no difficulties'' in returning deposits.

He blamed delays on ''accounting situations'' and the departure of the head of ICC's accounting operations in Florida.

Cortese said he understands the state has approved a sewage-treatment plant for Williamsburg.

He said refinancing of the project was contingent on getting the plant approved. ICC plans to approach Orange County as soon as possible with plans to get the road and bridge built so construction can resume, Cortese said.

Cortese said salespeople have continued to take deposits on homes in Williamsburg. Prospective buyers are told of the delays and that they may have to wait for delivery of the house, he said.

Meanwhile, Stanley Shaw, an attorney representing Levitt Industries, said he has spoken with the state-appointed conservator now in control of Old Court Savings. Shaw said the thrift's problems have had no effect on the Poinciana Park venture.